Rieger Report® ETF Face Off: Passive or Active?

Posted on by riegerreport

ETF Face Off:  Passive or Active?

This report compares head to head two municipal bond ETFs, two intermediate municipal bond ETFs and two U.S. Mortgage Backed Securities ETFs. Selected for comparison were leading passively managed ETFs and actively managed competitors.

  • Municipal bond ETFs: iShares National Municipal Bond ETF MUB (Passively managed) v. IQ MacKay Shields Municipal Insured ETF MMIN (Actively managed). Advantage: MMIN
  • Intermediate term municipal bond ETFs: Van Eck Vectors Intermediate AMT-Free Municipal Bond ETF ITM v. IQ MacKay Shields Municipal Intermediate ETF MMIT (Actively managed). Advantage: ITM
  • U.S. MBS ETFs: iShares MBS ETF MBB (Passively managed) v. Janus Henderson Mortgage Backed Securities ETF JMBS (Actively managed). Advantage: JMBS

Municipal ETFs: MUB v. MMIN

RiegerReport_121319_1

Sources: iShares.com, NYLinvestments.com and Yahoo.com. Table is provided for illustrative purposes only. Past performance is not a guarantee of future results. Data as of 12/9/2019 unless otherwise noted. (1) Data as of 11/302019.

Municipal ETFs Face Off: MUB v. MMIN 

RiegerReport_121319_2

Advantage: While MUB has a lower management fee, higher liquidity, hedging capability and transparency, IQ MacKay Shields MMIN has executed well, is opportunistic and follows the insured muni segment and as a result has the advantage in my opinion.

Intermediate Municipal ETFs: ITM v. MMIT

RiegerReport_121319_3

Sources: VanEck.com, NYLinvestments.com and Yahoo.com. Table is provided for illustrative purposes only. Past performance is not a guarantee of future results. Data as of 12/9/2019 unless otherwise noted. (1) Data as of 11/302019.

Intermediate Municipal ETFs Face Off: ITM v. MMIT

RiegerReport_121319_4

Advantage: Van Eck’s ITM due to performance, management fee, liquidity, hedging capability and transparency offered.

Mortgage Backed Securities ETF MBB v. JMBS Vital Statistics

RiegerReport_121319_5

Sources: iShares.com and JanusHenderson.com. Table is provided for illustrative purposes only. Past performance is not a guarantee of future results. Data as of 12/4/2019 unless otherwise noted. (1) Data as of 10/31/2019.

Mortgage Backed Securities ETF Face Off: MBB v. JMBS

RiegerReport_121319_6

Advantage: Very close, but Janus Henderson’s JMBS ETF has the ability to be opportunistic in its bond selection and that ability has resulted in higher year-to-date returns. MBB is ideal for low cost “beta” exposure.

Analyst Disclosures

  • At the time of this writing, JR Rieger owns individual municipal bonds and a municipal bond fund.
  • JR owns, actively looks for and attempts to buy insured municipal bonds.
  • JR does not own any of the ETFs identified in this report.

Click here for a print friendly version of this report.

Copyright © 2019 Rieger Report LLC. All rights reserved. Redistribution in whole or in part is prohibited without written permission of the Rieger Report LLC. All information provided by the Rieger Report LLC is for informational purposes only, impersonal, and not tailored to the needs of any person, entity or group or persons. It should not be considered financial advice. The Rieger Report LLC receives compensation in connection with licensing its research, advertising on its website, speaking and consulting services.
Past performance of any investment product or index referenced in the Rieger Report is not an indication of or guarantee of future results.
The Rieger Report LLC is not an investment advisor, and the Rieger Report LLC makes no representation regarding the advisability of investing in any such investment fund or other investment vehicle. A decision to invest in any such investment fund or other investment vehicle should not be made in reliance on any statements set forth in this document. Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum or similar document that is prepared by or on behalf of the issuer of the investment fund or other investment product or vehicle. A financial advisor should be contacted to determine what may be best for your individual needs. The Rieger Report LLC is not a financial or tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. No legal relationship is created between you and Rieger Report LLC.
The Rieger Report LLC does not act as a fiduciary or investment advisor. While the Rieger Report LLC has obtained information from sources it believes to be reliable, the Rieger Report LLC does not perform any audit or undertake verification of any information it receives.
The Rieger Report Rankings and model portfolios are opinions of relative ranking among the peer group analyzed as of the date expressed and not statements of facts. Rieger Report model portfolios are intended for illustration only. Any opinion or analysis decisions are not to be construed as recommendations to purchase, hold or sell any securities or to make any investment decisions, and do not address the suitability of any security. The Rieger Report LLC does not assume any obligation to update the content in this publication in any form or format.
Your use of any information from this document or presentation is at your own risk and without recourse against Rieger Report LLC, its members, managers, or employees. To the maximum extent permitted by law, Rieger Report LLC disclaims any and all liability in the event any information, commentary, analysis, and/or opinions prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.Municipal Bond ETF Model Portfolio
Rebalance for Q1 2019
Click the above image to enlarge.